Executive Summary

InterOil Corporation is developing an Integrated Oil and Gas Company in Papua New Guinea. The Company has positioned itself to own assets through the entire value chain - from the well-head to retail. InterOil has also positioned itself through a joint venture holding company to develop the first LNG project in Papua New Guinea. The joint venture company is targeting 2012 for the delivery of 'first gas'.

Upstream

InterOil's exploration asset portfolio is one of the largest held by a single company and comprises approximately 9 million acres, with four discovery's. We currently have four exploration licenses and two retention licenses in Papua New Guinea. Our principal licenses, Petroleum Prospecting Licenses 236, 237 and 238 are located in the Eastern Papuan Basin northwest of Port Moresby. We control 100% working interest in them, and our current exploration efforts are focused on, these three licenses. Our indirect participation interest investors have the right to a 31.55% working interest in the exploration wells currently being drilled and any resulting fields. These investors have a 31.55% interest in the next three exploration wells and a 24.8% interest in the two subsequent exploration wells. In addition, we own a 15% working interest in Petroleum Prospecting License 244, located offshore in the Gulf of Papua. We also own a 43.13% working interest in Petroleum Retention Licenses 4 and a 28.576% working interest in Petroleum Retention License 5.
 
Some recent accomplishments since inception:

•	Identified two new oil and gas systems.
•	Identified two distinctive sandstone reservoirs - (Pale and Subu sandstones).
•	Identified three new limestones . (Puri, Mendi and a Reefal limestone).
•	We have acquired several thousand miles of seismic, magnetic and airborne surveys over our prospective license areas.
•	Our Elk-1 gas discovery in 2006 recorded the highest gas flow in Papua New Guinea history, with a gas and condensate flow rate over 100 Million SCF/day. We are currently drilling the Elk-4 and Antelope structures (January 2008) both located in PPL 238 which we believe holds sufficient gas resource to underpin a LNG project in Papua New Guinea.

Midstream Assets

•	InterOil built and owns a 32,500 bpd nameplate design, Commercial Oil Refinery, with a proven through put of 36,500 bbls per day. The InterOil refinery is the only refinery in Papua New Guinea, supplying the country's refined product needs.

•	Currently operating below optimal capacity provides significant opportunities for growth in and around the surrounding region.

•	Crude oil supply contract with BP Singapore and refined product sales contracts with Royal Dutch Shell.

Downstream

•	InterOil is the largest distributor of refined products in Papua New Guinea and distributes under its branded name InterOil Products Limited.

•	The InterOil distribution business has grown through the acquisition of distribution assets previously owned and operated by BP and Shell in Papua New Guinea.

 
InterOil Products Limited owns and operates:

	Distribution depots
	Seaboard Terminals
	Trucking Systems, and
	A comprehensive retail network

Disclosures

InterOil Code of Business Conduct

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